Squarespace stock set for second-straight double-digit decline after 'disappointment' with investor day
Shares of Squarespace Inc. are on track to register their second-straight double-digit percentage decline Friday as analysts continued to weigh in on the company's analyst-day commentary. Shares are off 10.8% in Friday trading after falling 12% in Thursday's session. While the company outlined its opportunities in commerce during the Thursday event, "the disappointment on the day proved to the company's long-term margin guidance pointing to very little, if any, free-cash flow margin leverage remaining in the business, which was below what we believe investors were expecting long term," wrote RBC Capital Markets analyst Brad Erickson late Thursday. He has a sector-perform rating on the stock and cut his price target to $39 from $48. Mizuho analyst Siti Panagrahi had a different take, writing that "a lack of guidance on long-term revenue growth likely disappointed investors, leading to share price weakness and likely keeping shares range-bound in the near-term." He noted that the company is expected to give "top-line growth guidance" on its fourth-quarter earnings call. Panagrahi rates the stock a buy but lowered his price target to $60 from $70.
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